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By James Konstantin Galvez, Reporter
An official of an international real estate
services company has revealed that retirees and overseas Filipino
workers (OFWs) remained to be the most active buyers of residential
property in the country.
In a speech during the recent Asia Pacific
Marketing Power and Sales Effectiveness Mike Mabutol, director of
the CB Richard Ellis (CBRE) Philippines Investment Properties and
Capital Markets, said that OFWs and retirees are boosting market
demand for real estate.
“The bulk of overseas Filipino workers
and retirees from around the world residing in the Philippines or
considering residence here invest in the property market,
[targeting] mid-end residential development projects,” said
Mabutol.
Mabutol said that OFWs desire to provide
their families a better life. Retirees have also ramped up property
spending through their life savings and retirement benefits.
“This trend started four to five years
ago. Now, we see these retired buyers becoming more active in the
market, despite property woes in other parts of the world, in
particular the United States,” said Mabutol
To address increasing demand by OFWs and
retirees, real estate developers are developing affordable housing
developments and condominium projects, with investments ranging from
P1 million to P2.5 million, according to a CBRE Philippines report.
From 2008 to 2013, some 28 residential
condominiums are expected to rise in Makati City, providing more
than 18,000 units.
In Fort Bonifacio in Taguig City, 33
residential condominiums are expected to be completed between 2008
and 2013, which will provide more than 11,500 units.
High-end residential condominiums are also
in demand. As a result of increased demand, prices for high-end
residential condominiums in Makati City have risen from P90,000 per
square meter in 2006 to P100,000 to P130,000 per square meter this
year.
CBRE Philippines General Manager Trent
Frankum said that low interest rates and flexible financing terms
have helped boost the residential property sector, adding that
mortgage rates are hovering in a range of 8.5 percent to 12 percent.
Frankum said that other bright prospect
for the Philippine residential market is the development and market
positioning of retirement villages for expatriate “empty
nesters.”
Studies showed that retirees from the
United States, Europe and other countries in Asia, such as China,
South Korea and Japan are flocking to tropical countries like the
Philippines for their retirement.
“The retirement market is a potential
multibillion-dollar industry, and the Philippines has stepped up
efforts to entice foreign and local investments in such projects,”
Mabutol said.
The Philippine Retirement Authority, a
government-owned and controlled corporation, and the Philippine
Retirement Institute encourage local and foreign investors to
support retirement community projects.
Road shows done in Korea, Japan and the
United States, have promoted Philippine retirement villages,
offering tax incentives for pioneering projects in the country.
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